Bond pricing & yield worksheet with answers

Free printable Bond pricing & yield worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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1.Easy

A bond with a face value of €1 000 pays an annual coupon of 2% and matures in 7 years. The yield to maturity is 3%. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 3%n = 7

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 10 years. The yield to maturity is 5.5%. Find the price P of the bond.

F = €1 000coupon = 7%YTM = 5.5%n = 10

P = €

3.Medium

A bond with a face value of €1 000 pays a 2% annual coupon in two half-yearly payments and matures in 12 years. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000coupon = 2%YTM = 4%n = 12

P = €

4.Medium

A bond with a face value of €1 000 pays an annual coupon of 7% and matures in 10 years. Its yield to maturity changes from 3% to 1.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 7%n = 10y₁ = 3%y₂ = 1.5%

ΔP = €

5.Hard

A bond with 13 years to maturity (face value €1 000, annual coupon 6%) sells for €1 200. The issuer can call it in 6 years at a call price of €1 060. Find the yield to call YTC in percent.

F = €1 000coupon = 6%P = €1 200call price = €1 060call in 6 years

YTC = %

6.Hard

A bond with 18 years to maturity (face value €1 000, annual coupon 5%) sells for €1 127. The issuer can call it in 6 years at a call price of €1 050. Find the yield to call YTC in percent.

F = €1 000coupon = 5%P = €1 127call price = €1 050call in 6 years

YTC = %

Answer key

1. P = 937.7 €
2. P = 1113 €
3. P = 810.9 €
4. ΔP = 166 €
5. YTC = 3.206 %
6. YTC = 3.391 %

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